Bonfield to step down from BT

BRITISH Telecom chief executive Sir Peter Bonfield is to stand down at the end of January, it has been announced.

He will receive nearly £1.5m in salary, bonus and benefits, and will also receive share awards worth £290,000 over three years, depending on company performance.

Sir Peter, who joined BT at the beginning of 1996, said: 'This is the right time to announce a change.'

He said he planned to stay involved in technology-related business but 'with a broader portfolio of international interests'.

The 57-year-old director had been expected to stand down early following completion of the firm's restructuring - which is seeing it spin off its mobile arm, mmO2.

His contract ran to the end of next year, but Sir Peter had said he would stay until the restructuring was completed.

The pay-off breaks down to one-year's salary of £820,000, one year's bonus of £615,000, plus the value of other benefits such as a car and health insurance, totalling £50,000. In addition to the £290,000 shares, Sir Peter has deferred bonus plan awards totalling 296,084 shares, which were worth £997,803 at last night's closing price.

The choice of Bonfield's successor has yet to be finalised, although Pierre Danon, the well-respected head of BT's Retail division, is thought to have been groomed as a potential successor.

BT chairman Christopher Bland said in a statement: 'Peter's contribution to BT has been enormous during his six years as its CEO. We have begun to look for a successor to Sir Peter and this appointment will be announced in due course.'